This quiz works best with JavaScript enabled. Home > Accounting > Management Accounting > Management Accounting – Quiz 1 🏠 Homepage 📘 Download PDF Books 📕 Premium PDF Books Management Accounting Quiz 1 (20 MCQs) Quiz Instructions Select an option to see the correct answer instantly. 1. What is calculated in a Trading Account? A) Closing Inventory (stock). B) Gross profit. C) Profit for the year /net profit. D) Sales. Show Answer Correct Answer: B) Gross profit. 2. Sale of Raw Material Scrap should be subtracted after calculating Works Cost. A) True. B) False. Show Answer Correct Answer: B) False. 3. What is the quick win in determining PT IP pricing? A) Subholdingisasi dan Cost Efficiency. B) Provision of comprehensive LK and subholding. C) Cost efficiency and automation of presenting fuel information. D) Automation of presenting fuel information and presenting BPP per engine. Show Answer Correct Answer: D) Automation of presenting fuel information and presenting BPP per engine. 4. Which of these describes collateral? A) Damage done to someone. B) Something of value used to secure a loan. C) Something most people pay to the government. D) A type of loan from a bank. Show Answer Correct Answer: B) Something of value used to secure a loan. 5. Which one of the following is normally classed as a variable cost for a 'high street' photo print shop? A) Supervisor salary. B) Cost of the photo paper. C) Rent. D) Electricity used. Show Answer Correct Answer: B) Cost of the photo paper. 6. All of the following are needed to prepare a flexible budget EXCEPT determining the: A) Budgeted variable cost per output unit. B) Budgeted fixed costs. C) Actual selling price per unit. D) Actual quantity of output units. Show Answer Correct Answer: C) Actual selling price per unit. 7. Which product should we emphasise? A) Customers. B) Finance. C) Management. D) Marketing. Show Answer Correct Answer: D) Marketing. 8. Which item is important to consider when selecting a credit card? A) Annual Percentage Rate (APR). B) Fees. C) Both APR and fees. D) The look of the credit card. Show Answer Correct Answer: C) Both APR and fees. 9. A profit centre is a centre A) Where the manager has the responsibility of generating and maximising profits. B) Which is concerned with earning an adequate Return on Investment. C) Both of the above. D) Which manages cost. Show Answer Correct Answer: C) Both of the above. 10. Indirect material used in production is classified as A) Office overhead. B) Selling overhead. C) Distribution overhead. D) Factory overhead. Show Answer Correct Answer: D) Factory overhead. 11. What is a semi variable or semi fixed cost? A) Cost which is fixed in nature. B) Cost which is variable in nature. C) Cost which is partly fixed and partly variablein nature. D) None of above. Show Answer Correct Answer: C) Cost which is partly fixed and partly variablein nature. 12. In flexible budgets, costs that remain the same regardless of the output levels within the relevant range are: A) Allocated costs. B) Budgeted costs. C) Fixed costs. D) Variable costs. Show Answer Correct Answer: C) Fixed costs. 13. Internal Revenue Service (IRS) A) Internal User. B) External User. Show Answer Correct Answer: B) External User. 14. Indirect expenses are also termed as ..... A) Direct Expenses. B) Administrative Expenses. C) Overheads. D) None of above. Show Answer Correct Answer: C) Overheads. 15. Credit sales of Jump Ltd. for the year is ₹ 12, 00, 000 and debtors at the end of year ₹ 2, 40, 000. Assuming 360 days in a year, the average collection period will be- A) 60 Days. B) 72 days. C) 70 days. D) 62 days. Show Answer Correct Answer: B) 72 days. 16. Using Absorption method, the overhead cost can be allotted to cost units. Below are the common cost unit used for absorption except A) Breakeven. B) Unit produced. C) Time basis. D) Blanket overhead. Show Answer Correct Answer: A) Breakeven. 17. A Profit is earned if? A) Assets exceed Expenditure. B) Income exceeds Expenditure. C) Cash Inflow exceeds Cash Outflow. D) Income exceeds Liabilities. Show Answer Correct Answer: B) Income exceeds Expenditure. 18. Which of the following is a basic feature of a Management accounting system? A) Objective information. B) Highly aggregated data. C) Future oriented reports. D) Both a and b. Show Answer Correct Answer: C) Future oriented reports. 19. The company receives cash from a bank loan A) Assets (I). B) Liabilities (D). C) Equity (D). D) None of above. Show Answer Correct Answer: A) Assets (I). 20. Marginal costing theory assumes that every cost can be placed in one of the two categories ..... costs or ..... costs. A) Direct, Indirect. B) Fixed, Variable. C) Direct, Variable. D) Fixed, Indirect. Show Answer Correct Answer: B) Fixed, Variable. 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